The government has made Finance Division approval mandatory for decisions in 26 key areas in a bid to tighten fiscal discipline, enhance transparency and ensure greater accountability in public financial management.
The Finance Division of the Ministry of Finance issued an order in this regard on Tuesday signed by Finance Secretary Dr Md Khairuzzaman Majumder, was issued alongside a revised office memorandum on the delegation and re-delegation of financial powers.
The memorandum includes a detailed and clearly defined list of matters that must be placed before the Finance Division for consideration. The updated framework applies to both operational and development budgets and will take effect immediately, remaining in force until further notice.
Posts, vehicles and organisational changes
Under the new order, all proposals related to the creation or abolition of posts, retention of temporary posts for more than three years, changes in pay scale, status or designation, and regularisation of posts must be submitted to the Finance Division.
Approval will also be required for proposals involving the inclusion or modification of vehicles, machinery and equipment in the organisational structures of ministries, divisions and their attached departments or agencies, as well as for the procurement and replacement of vehicles.
Service procurement and labour engagement
All matters concerning work-charged and contingent employees, procurement of services under outsourcing policies, and engagement of temporary daily-paid workers will require Finance Division approval.
Expenditure control and budget re-appropriation
The order makes approval mandatory for any expenditure exceeding budget allocations, spending for which no specific provision exists in the approved budget, and any grant or re-appropriation—whether or not it creates liabilities on attached funds.
Stricter controls have also been imposed on re-appropriation between revenue and capital expenditure, and on shifting allocations from pay and allowances to other economic classifications under the Bangladesh Salary Scale.
Financial commitments and legacy claims
Any financial commitment extending beyond the relevant fiscal year and all financial claims dating back to the pre-independence period must be referred to the Finance Division for scrutiny.
Honorarium, pay and service conditions
Finance Division clearance will be required to award honorarium exceeding Tk15,000 to government officials and employees for arduous or meritorious work, or to grant honorarium more than once in the same fiscal year.
In addition, the interpretation of rules relating to pay and allowances, travel and transfer expenses, provident funds, pensions and gratuities, as well as any changes to service conditions affecting remuneration, will be centrally decided.
Revenue, taxes and grants
Any proposal affecting government receipts—including non-NBR taxes, non-tax revenue, fees and cesses—must be placed before the Finance Division. The same requirement will apply to granting advance increments beyond those allowed at initial appointment and to approving grants outside the approved budget.
Advances, procurement and hospitality
Prior approval will be required for withdrawal of advances exceeding Tk15 lakh (excluding permanent advances or imprests), local procurement of stationery and similar items above Tk5 lakh, and hospitality expenses for meetings, conferences or training programmes exceeding prescribed limits.
Write-offs and foreign travel expenses
The order prohibits the write-off of irrecoverable losses exceeding Tk5 lakh arising from fraud or negligence, as well as the waiver of unrecoverable loans or interest granted to government employees, without Finance Division consent.
For official foreign travel, expenditures exceeding specified dollar ceilings by cabinet ministers, state ministers, secretaries and officials of equivalent rank will require approval. These ceilings cover hospitality as well as other supply- and service-related expenses for different categories of officials and delegation heads.
Policy formulation, loans and guarantees
All policies with financial implications—including bilateral and international agreements, import-export policy, investment policy, pricing and labour policy, overseas employment policy, customs policy and the establishment of various funds—will now require Finance Division approval.
The list also includes government borrowing, issuance of guarantees, off-budget financial commitments and approval of the distribution of block allocations.
Other matters
Prior approval will also be required for waiving or abandoning government revenue claims, approving house rent above prescribed rates for private accommodation, fixing allowances for private members of committees and foreign experts, framing regulations for state-owned enterprises, and approving schedules of rates.
Rationale
According to the Finance Division, the comprehensive list clearly defines areas requiring central financial oversight. The move is expected to improve transparency in public expenditure, reduce discretionary decision-making, and strengthen fiscal discipline and coordination across ministries and government agencies.